I Was Nervous That My Car Insurance Was Expiring. I Hope We Feel That About Life Insurance, Too.

I know that my car was delivered to me last August 7, 2018.

I know that its insurance was valid until August 3, 2019.

I may not know where I got all the minor scratches on almost all of its sides, which to me doesn't matter, but I have memorized the details above.

And on the third week of July, I was already coordinating the renewal of my car insurance with my agent. 

Why?

First, still being on loan, that is a requirement.

Second, imagine going out of the house, being behind the wheel, with or without passengers who are usually family, knowing that anything can happen on the road, and not having car insurance. 

Imagine the hassle and the cost that may entail. It was an uncomfortable feeling for me.

The same feeling I had knowing that my driver's license was expiring back in June, which made me renew before my birthday.

For my car's first year, I had an insurance claim

I am a safe driver. And I am a slow driver. I think this is the compliment I hear from my mother the most! (Thank you, Nay. I love you.)

But still, I had an insurance claim.

Luckily, it was not due to an accident I met on the road; but it was an accident which occurred while my car was parked, doing absolutely nothing, one Saturday evening.

We live in a safe neighborhood. That is as far as I know, since I only park outside of our house for the past ten years or so. But one night, we heard boys shouting as if there's a fight. For safety purposes, my family and I opted to stay inside the house.

The next day, while my father was doing his daily morning routine of cleaning outside, he saw a big dent on my car's rear door. Apparently, the kids threw rocks at each other and hit my car. I was thankful that it was just a dent and not a broken window. Why? I drive my kids to school everyday. I will not be able to do that with a broken window. But with a dent, it's fine. No big deal.

I asked for an estimate for the damage from the car company and it was close to Php27,000! Imagine if I do not have car insurance. That would have been  Php27,000 out of my hard earned savings. Worse, it meant paying for something which was not my fault!

Thank God for insurance!

Now, imagine going out of your house, for work or for leisure, knowing that anything can happen, and not have LIFE INSURANCE.

Actually, you don't even have to go outside. Many people die in their sleep. (Forgive my morbidity.)

But my point is, everyday is a risk. 

There is risk when you cross the road.

There is risk while you patiently fall in line at the MRT station, or while you drive on your way to work.

There is risk of you being critically ill.

There is risk of your company or employer going bankrupt and you losing your job, no matter how secure it may seem to be. Believe me, there is no such thing as job security. I have seen competent and tenured employees lose their jobs overnight. 

And in any of these situations -- accident, critical illness, loss of job, death -- can cause your financial situation to fall like a house of cards. 

The truth is, majority of us are walking through a financial tightrope in our daily lives, whether we see it or not. Many of us are just one unexpected bad event away from a catastrophe, and not all of us have rich relatives who can rescue us in a pinch. I have rich relatives but I do not want them to carry the financial burden of something they have absolutely nothing to do with, which was how I felt if I had to pay for the Php27,000 car damage.

And imagine the stress in your life caused by these things that you cannot control.

And this is where life insurance comes in. 

Simply put, insurance is risk transfer. 

The insurance company, like Insular Life which I proudly represent, takes the risk on my behalf. 

If I meet an accident, they pay.

If I get disabled, partially or totally unable to work, they pay.

If I become critically ill, they pay for my treatment and income replacement.

If I retire, they pay.

If I die, they pay my chosen beneficiaries.

Best part? Everything is TAX FREE.

And believe it or not, the amount which they will be paying me or my family is not small. It costs millions of pesos. I encourage you to get as much insurance as you can because I have never heard anyone complain about receiving so much money from insurance. Have you?

And the premium that I am currently paying is only a fraction of the value I am getting. I may not have any claims yet, but simply living every single day free from stress is already worth it. 

Ironically, car insurance is more expensive than life insurance -- and yet, more people are willing to pay

On its first year, I paid Php31,000 for my car insurance at its Php988,000 value.

A year after, I paid Php23,000 for my car insurance at its Php889,000 value.

In one year, my car depreciated that much; but still, I was willing to pay that price for insurance.

And if I do not have a claim within that year, my insurance premium simply goes down the drain. 

But that is okay. No complains. 

But when it comes to life insurance, your Php30,000 for one year can give you as much as Php3M coverage, depending on your age and health.
And unlike car insurance, if no claim was made within the year, a part of the premiums you paid accumulates and grows as your future funds, and is also added to the insurance coverage. 

This means that the longer you pay, the bigger future fund you get, and the more insurance money you leave for your family.

Please stop asking for the minimum premium.

Because like a car, you would want to consider yourself as a Land Cruiser and not just a Wigo. And Land Cruisers don't ask for the minimum coverage, because they know that they deserve the highest possible coverage instead.

As a matter of fact, you are so much more than a Land Cruiser.

Why?

Because you are an asset. No questions asked.

You do not depreciate in value. Rather, you appreciate in value over time. 

And if you allow that to sink in, you would realize that you are worth more than just the minimum.

Protect your assets through insurance.

Protect your car and your house.

But more importantly, protect yourself, your income, your health, your wealth and your future with a life insurance policy.

Allow an Insular Life policy do that for you.

Talk to your Insular Life Financial Advisor TODAY or you may send me an email at financialplanningforpinoys@gmail.com.

A Magnitude 6.3 Earthquake Hits Philippines Today and This is What It Taught Me

https://www.sunstar.com.ph/article/1802326

Today, April 22, 2019, a 6.3 magnitude earthquake hits Metro Manila and Central Luzon at 5:11 in the afternoon.


Where were you, what were doing when it happened, and who were you thinking about while doing the "drop, cover, hold?"


As for me, I just got home, with only a few steps from our front door, and heard my mother shouting, "Mamayun!" (Earthquake!) from the bathroom. I went straight to our bedroom, where my two young kids were playing, and my youngest daughter said, "Mommy, nagsshake." This is their first earthquake experience.


I then received a call from my husband to check on us, and calls from my brothers as well. 


Thankfully, we are all safe.

By 7:00 PM, I received a text message from my client...

My client's insurance application is still pending because of medical concerns. She had to see her Cardiologist who holds his clinic late in the evening, and her doctor wants me to be there during the consultation. My client told me that she and her husband will be at the hospital by 9:30 PM.

I arrived before my client did.

But before I left for work, I overheard my parents talking about a relative who has to undergo bypass surgery. 

While waiting at the hospital, I exchanged messages with my brother who is close to this relative. I asked if our relative has critical illness insurance. He said he has none. For the longest time, my brother is a non-believer of insurance himself. He thinks that getting a life insurance is just an unnecessary expense. You may wonder why I have not enlightened him about insurance and convinced him about getting one; well, admittedly, I'd say I easily gave up on him. When he said no to me the first time, I took it as a no forever. This was the reason why I didn't bother asking him again.

But I think this is what being close to death or illness teaches us -- that death is real and being ill is real...

During that exchange of messages, I had the courage to ask my brother to apply for insurance. To my surprise, his reply was, "Okay, thank you."

There was no sign of the earthquake happening today.

There was no sign of our relative needing to undergo bypass. He looked perfectly fine when I last saw him less than a month ago.

And yet, these things happen.

I remembered what a friend often say, "Kung oras mo na, oras mo na." Familiar, isn't it?

The question is, 

"What if oras mo na, pero ung mga mahal mo sa buhay hindi pa?"

"What if magkasakit ka, pero ung ipon mo sa bangko kulang pa?"

Will you allow your family to take that toll in the future when you can actually do something about it now?

Personally, I do not know what will happen tomorrow, or if tomorrow will even come; but I would rather be prepared for it through the things I can control today, than simply let fate takes its course. We were gifted with logical thinking for a purpose.  

You'd probably say, "Nah, just another insurance agent taking advantage of that earthquake..."

Yes, I am an insurance agent, AND...

If "oras ko na," I have adequate insurance money to leave my loved ones with.

If I fall ill, I have critical illness insurance to cover for my medical expenses. 

But, I was with my client past regular working hours because the approval of her insurance application is as important for me as it is for her.

I was reaching out to my brother to apply for insurance because I love and care for him. 

And I honestly could not let this day pass without finishing this blog post because I know that I have this responsibility to reach out and educate as many people as possible about life insurance and what it can actually do for you and your family.

Life insurance is for income protection and asset protection. This means that your insurance company, like Insular Life, takes the risk in your behalf. If the insured dies, his income is protected. If the insured dies with accumulated assets, his assets are protected. This is what Insurance Planning is about.

Maybe that earthquake was a wake up call for you.

And you reading this blog post is a confirmation that you need to start preparing today for the what ifs of tomorrow.

For me, that earthquake was a definitely a wake up call, too, but not as a breadwinner, but as a Financial Advisor who needs to do her job more consistently than ever. I hope that this blog post served its purpose. 

Be very blessed and praying for everyone's safety.

P.S. If you want to learn more about insurance planning, send me an email at financialplanningforpinoys@gmail.com. It will be my pleasure to share this with you.

P.S.2 I hope you find this post helpful. Kindly click the SHARE button. Thank you very much in advance.

Life Insurance as a Gift of Love

The love month ain't over yet, and so I thought of writing this timely post. Besides, love does not only happen during February; but every single day, for the rest of our lives. It does not only mean love for a significant other, but love for parents, siblings and children as well. Okay, enough of the sweet stuff now. Let's get to the point.


Almost everyone in our family has insurance -- my husband, myself, our two kids, my brothers, and my nephew -- everyone except our parents aged 62 and 72. Why? My father can no longer apply for insurance because of his age. Valid issue ages is up to 70 only. On the other hand, my mother can still apply, but it will be very expensive, again, because of her age. Last time I checked, her premium would have to be Php80,000/year, to have a Php400,000 life insurance benefit with investment through a VUL. 


My mother is no longer working, meaning no one depends on her financially. She is also in her 60s so no need to "prepare" for retirement as she is already in that stage. Practicality speaking, getting her a VUL (insurance + investment) wouldn't make sense since it costs that much. I know she would just tell me to save that money for other future expenses -- same words she said when I got her an HMO. 


And then shift happens. Why?


Insular Life, the first and largest Filipino insurance company, offers this new product called Solid Cover. It is a peso-denominated, regular pay, investment-linked insurance product that offers maximum protection for as low as Php55 per day or Php20,000 per year. It also provides a 10 year guaranteed coverage, and living benefit to cover lifestyle expenses of family bonding expenses in the future.


A couple of weeks ago, I told my mother about Solid Cover. For only Php20,000 per year, she can have the same Php400,000 life insurance plus a little investment. Actually, our conversation prompted me to write this blog post. Also, it felt weird talking about life insurance and death planning with someone you love. 


I told her that the insurance money may be used for the final expenses, so that it may not dig a hole from our pockets or worse case, ask money from relatives. My mother replied, "Di ko na kailangan kumuha ng insurance. Kasama naman ako sa HMO ng Kuya mo at kilala ko naman ung sa Funeraria." 


Well, yes. But, what if my brother's current employer changes their health benefits? Or what if my brother moves to another company with a different health package? Or what if my brother is no longer employed? And what if my mother's friend from the funeral parlor is not there anymore? Or he/she may know my mother but not us? Your life insurance policy addresses ALL of these what ifs. 


But my mother being persistent with what she believes in, she still said NO. But you know what made her say YES and eventually asked where to sign for the application?


I told her, "Pamana mo sa amin yun." Php400,000 may not be much considering inflation and all, but I realized that parents would still want to leave a legacy for their children -- and a life insurance policy can also do that for you. It is something that my mother doesn't have to do as taking care of us all these years is already so much of a legacy, but it is something that she wants to do. 


And honestly, that conversation with her struck a chord in my heart. I felt her love in a totally different way. And indeed, LIFE INSURANCE is a GIFT of LOVE. As for me, my insurance policies is an assurance that the people I love will be well-taken cared of financially in case something happens to me. 


In the Philippines, only 15% of those who are working are insured. Why? Because we are not comfortable talking about death. But reality is, it will happen as no one gets out of this world alive -- so we might as well plan for that, too. 


Imagine how will your family's life look like in case you will no longer be in the picture because of what ifs? What if you become disabled after an accident involving a drunk driver from the other side of the road? What if you were diagnosed with a critical illness because of your family's medical history? What if untimely and premature death occurs?


If you do not have a life insurance policy as your safety net, will your wife need to work again to make ends meet? Will your kids need to transfer from a private to a public school because they can no longer afford it? Will your eldest son or daughter stop from college to take on your role as a breadwinner? What if you still have very young kids? 


If you love your family, which I am very sure you do, I encourage you to talk to your InLife Financial Advisor TODAY. And if you are not comfortable talking about it, you can at least send me an email instead at financialplanningforpinoys@gmail.com. I would love to hear you out!


P.S. My goal is to spread financial literacy as far as the Internet can. Kindly help with that through sharing this post. Thank you very much!

I Began Preparing For Christmas In January

Okay. I admit. Sometimes, I consider myself an OC (obsessive compulsive) when it comes to planning. 


I began preparing to quit my job as soon as I learned about investing when I was 30. I have this goal of being unemployed to pursue my passion by the time I reach 40. Proudly, I was able to do it and became a Full Time Insular Life Financial Advisor at age 35. 


It was five years ago when my husband and I began preparing for our kids' college fund. We have also began preparing for their place to stay as we have been paying for a condo unit for the past year.


My one and only dream travel destination is currently four years in the making. I wanted to do something significant for my 40th birthday.


I also enjoy planning what treats my daughters will give to their classmates during Valentines Day, Halloween, Christmas, and most especially during their birthdays. My kids and I began to plan for their coming birthdays last year!


Maybe this is the reason why my career as a Financial Planner suits me best. I love learning and teaching about insurance and investments, and I love planning. Obviously.

Last Night, January 8, I Bought My First Gift For Christmas

Christmas last year was my first Christmas celebration as unemployed. This means that for the first time, from my 15 years of being employed, I did not have a Christmas Bonus. No Christmas basket either, nor sick leave conversion.

And honestly, it was an adjustment period for me. In addition to that, my separation pay was not yet released, which I was expecting before 2018 ended. I also thought that I could sell my shares from an investment. That didn't happen either.

With that experience, I needed to come up with a new strategy. Or I'd rather say, better planning skills. This time, everything will depend on me -- not on a pending final pay nor money which I have no full control of. 

This is the reason why last night, on my way home to Tarlac, I went to Stabucks to purchase my very first gift for Christmas 2019 -- a Starbucks gift card!!!


Crazy you may think. Who starts planning for Christmas in January, right? Well, I do. Let me share with you the reasons why I did so...


1. Because Christmas is still 12 months away and I plan to buy gifts monthly, shedding cash is easy on the pocket. I am sure you would agree that spending Php2,000 monthly (more or less) is better than cashing out Php24,000 one time. Think INSTALLMENT.


2. Because I am not rushing, I free myself from stress. Is the traffic on your way to the mall, or length of time to get a parking, or long lines in the cashier and gift wrapping section still fresh in your memories? I do not want to go through that. Even this gift card was purchased via drive thru. NO LINES.


3. I started practicing minimalism, and I want to try that in gift giving this year. No gift wrapping and gift tags needed. This may be just a gift card, but still way better than giving cash. This is well thought of as its recipient loves coffee, very much. 


While in the process, this is what I realized. Preparing for Christmas is like preparing for retirement. Both needs PLANNING.


I remembered what my ten-year-old daughter told me last year. It was not even December yet when she was done with all of her Christmas gifts -- bought, wrapped, tagged and all. She was literally just waiting for the date. And during that time, I haven't even began mine. I was dilly dallying. And this is what she said, "Mommy, Christmas ung best occasion tapos hindi mo paghahandaan?!?" Right there and then, I knew that my daughter will do way better than me in planning, and I also felt guilty. What she said made so much sense. And for a ten year old, that was definitely something.


And if we need to prepare for Christmas which occurs year after year, how much more for retirement which is supposedly the most forward looking years of every working individual's life?


And here are some points that you may consider with regards to retirement planning.


1. Just like Christmas, you know when your retirement will happen. Will it be at the newly approved age of retirement for government workers which is 56? Will it be at 60? Or 65? How many years away are you from that age? 


2. Based on your average Christmas spending, you have a rough estimate of how much you would need for this Christmas. The same applies with your retirement. Your target retirement fund is based on your average annual spending. If a client tells me that he/she wants to invest for retirement, this is what I ask him/her -- "If you were to retire today, how much would you need?" With his/her given answer, long term inflation rate, client's risk appetite and investment's rate of return, I do the Math and present it to them. The last thing you would want is to delay your retirement or live uncomfortably because your retirement fund is way below what you actually need.


3. With all these numbers, you would know how much do you really need to invest today so that you can live the same lifestyle (if not better) that you have by the time you retire. And take note that the more you delay, the bigger amount you would need to invest since time is money's best friend. 

Final Note

There is a reason to fear retirement. That is if you are not preparing for it. 

Instead of retirement being something to fear, make it an event that you will look forward to, something that you will be excited about. Begin RETIREMENT PLANNING TODAY! Be that someone who prepares for Christmas in January. Better yet, be that someone who prepares for retirement now. My youngest clients began preparing for retirement at age 21! (I will write about this in a different blog post.) Have that courage to go against the crowd. I urge you to inspire change and break that sandwich generation in your families. 

Send me an email at financialplanningforpinoys@gmail.com with the subject RETIREMENT PLANNING and I will do a FREE computation for you. You may also visit our webiste at http://synergiainsurance.com. 

Wishing you all the best and a year closer to your financial goals this 2019! Cheers!